Annual Report 2020 - New Zealand Symphony Orchestra

NEW ZEALANDSYMPHONY ORCHESTRA

Pūrongo ā-Tau 2020

Annual Report 2020

NEW ZEALAND SYMPHONY ORCHESTRA TE TIRA PŪORO O AOTEAROA

FOR THE YEAR ENDED 31 DECEMBER 2020 MŌ TE TAU I TE OTI I TE 31 O HAKIHEA 2020

G.69

Schools concert, Wellington

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Laurence Kubiak MAICD, GAICD Chair/Heamana

22 April 2021

Geoff Dangerfield QSO Deputy Chair/Heamana TuaruaChair/Heamana Audit Committee/Komiti Arotake 22 April 2021

The NZSO: Our Vision, Mission and Values 2 Te Tira Pūoro o Aotearoa: Matawhānui/Whakatakanga/Matawhānui/Whai Painga

2020 Overview 4 2020 He Tirohanga Whānui

Organisational Structure 18 Te Hanga o te Whakahaere

Governance Statement 20 He Tauākī Kāwanatanga

Statement of Responsibility 22 He Tauākī o ngā Haepapa

Statement of Service Performance 24 He Tauākī o ngā mahi

Financial Statements 30 He Tauākī Pūtea

Independent Auditor’s Report 48 Pūrongo a te Kaiarotake Motuhake

Organisational Health and Capability 52 Te Ora me te Āheinga o te Whakahaere

A Thank You to our Supporters and Partners 56 He Mihi ki a Koe nā Ngā Kaitautoko me ngā Hoa Kaipakihi

ContentsNgā Ihirangi

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The Board is pleased to present the Annual Report for the New Zealand Symphony Orchestra for the year ended 31 December 2020

E harikoa ana te Poari ki te whakatakoto i te Pūrongo ā-Tau o Te Tira Puoro o Aotearoa mō te tau i oti i te 31 o Hakihea, 2020

Cover Cheryl Hollinger, Associate Principal Trumpet Emeritus

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The NZSO’s Vision, Mission and ValuesTe Matakite, te Whakatakanga, me ngā Uara o NZSO

Our Vision Tā Mātou MatakiteTo be Aotearoa New Zealand’s most loved entertainment brand.

Our Mission Tā Mātou WhakatakangaTo delight, surprise and excite all New Zealanders through memorable musical experiences.

Our Values Ō Mātou UaraFresh: We play old music like it was written yesterday and inhabit new music in a way that is familiar.

Fearless: We are not constrained by convention or location.

In Front: We are world-class in everything we do.

He Herenga Whenua: Inspired by, and connected to, this awe-inspiring country, we take excellence and turn it into a shared experience for all New Zealanders.

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Objectives of the Orchestra Ngā Whāinga o te Tira Puoro

The objectives of the Orchestra are outlined in Section 8 of the New Zealand Symphony Orchestra Act 2004, as follows:

• To provide the public of New Zealand with live and recorded performances of symphonic music performed to an international standard.

• To provide an orchestra that—

(i) is highly skilled and artistically imaginative; and

(ii) has strong community support.

• To be a leading New Zealand performing arts organisation with a role in the development of a distinctively New Zealand cultural environment.

• To promote and encourage New Zealand musical composition and composers.

• To provide performance opportunities for New Zealand musicians, whether as members of the Orchestra or as soloists.

Functions of the Orchestra Ngā Kawenga a te Tira PuoroThe functions of the Orchestra are outlined in Section 9 of the New Zealand Symphony Orchestra Act 2004, as follows:

• To ensure that the Orchestra presents a broad repertoire of orchestral performance including New Zealand works and recent works.

• To encourage the development of New Zealand musicians.

• To encourage the development of New Zealanders’ knowledge and appreciation of orchestral music.

• To develop and expand the audience of the orchestra on a national basis.

• To provide a touring orchestra (which may also include international performances).

• To carry out any other functions consistent with its principal objectives, as agreed to by the Minister after consultation with the Orchestra.

• To cooperate with other similar institutions and organisations having objectives similar to those of the Orchestra.

Objectives and Functions of the New Zealand Symphony Orchestra

Robert Orr, Section Principal Oboe

Megan Molina, Second Violin

Tēnā koutou katoa

He MihiE ngā mana, e ngā reo, e ngā rau rangatira mā o te motu whānui nei o Aotearoa, tēnā ra koutou katoa. Tēnei te aumihi ki nga mate huhua o te motu kua riro atu ki te pō haere, haere, haere. Tino rerekē te ahuatanga o te tau kua pahure ake nei, tērā nanakia o te mate urutā, he kapua pōuriuri ki runga i te motu, rātou ki a rātou, tātou ki a tātou ki te ao awatea. Huri mai ki a tātou o tēnei ao me te whaiwhaia ngā wawata mō te hunga mō āpōpō tēnā ra koutou katoa.Ko te pūrongo-ā-tau o te Tira Pūoro o Aotearoa e horapa ana ki ngā iwi katoa, tēnā koutou, tēnā koutou, tēnā koutou katoa.

—

2020 Overview2020 He Tirohanga Whānui

For the New Zealand Symphony Orchestra, 2020 was arguably the most testing of our 75 years.

The COVID-19 pandemic – which included nine weeks from 25 March to 8 June where public performances were not permitted, along with oscillating alert levels until early October – demanded a radical reshaping of the Orchestra’s planned 2020 programme. The Orchestra operated throughout the year with a two-month rolling timeline and was constantly updating touring schedules, venue bookings, music licensing, international guest timetables, orchestral repertoire and musician availability, as well as curating, rehearsing and performing urgently changed repertoires.

Despite this, the Board, musicians and support team demonstrated admirable agility, resilience, innovation, teamwork and commitment to excellence. As a result, despite the obstacles, we were able to fulfil the Orchestra’s mission – to delight, surprise and excite all New Zealanders through memorable musical experiences.

In the words of a well-known whakataukī:

Mā whero, mā pango ka oti ai te mahi. With red and black the work will be complete.

Alert levels and border restrictions meant that the NZSO was unable to tour for much of the year and was only able to bring a few international artists, conductors and overseas-based employees into the country.

Nevertheless, the Orchestra remained acutely conscious of its obligations under the New Zealand Symphony Orchestra Act 2004 to offer audiences live and recorded performances of symphonic music performed to an international standard, along with encouraging the development of New Zealanders’ knowledge and appreciation of orchestral music, promoting and encouraging local musical composition and composers and offering performance opportunities for our musicians.

What’s more, it focused on delivering Minister Carmel Sepuloni’s clear expectation “to see the NZSO continue to explore new and innovative ways of connecting with the people of New Zealand and supporting the cultural sector” (Post Budget Letter of Expectations 2020/21, 1 June 2020).

Consequently, the NZSO moved with speed and professionalism to digitally stream regular concerts and performances – as well as education initiatives – from the beginning of the nationwide lockdown in March and throughout the year.

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Shed Series, Wellington

By providing solace, inspiration and connection to a great many New Zealanders at a time of isolation and uncertainty, we were able to contribute to national, community and personal wellbeing and demonstrate our special place in the cultural life of Aotearoa New Zealand.

Due to reduced touring costs and other savings as a result of the one-off and specific circumstances of the COVID-19 pandemic, the NZSO achieved a surplus of $1.522 million in 2020. This surplus will be of vital importance in funding the Orchestra’s activity in 2021.

During the year, the NZSO and the Ministry for Culture and Heritage began developing options for a more financially stable NZSO including consideration of the NZSO’s strategy and operating model. This work will continue in 2021 with the objective of finalising a proposed way forward by the end of the calendar year.

During 2020, the NZSO Board resolved to support and implement the ongoing management of the NZSO’s environmental footprint to support the Government’s Letters of Expectations and the Climate Change Response (Zero Carbon) Amendment Act 2019. As a result, the NZSO formed the Environmental Action Group (EAG) with representation and participation across the organisation.

The objective of the EAG is to reduce and manage the NZSO’s carbon emissions and foster an ongoing culture of environmental responsibility in our sector. To achieve this, the NZSO has partnered with Toitū to measure, manage and offset the NZSO’s greenhouse gas emissions. This will commence in 2021 when the NZSO will embark on a range of measures to reduce its carbon emissions and offset the residual emissions to achieve Toitū carbonzero certification.

The year ended with positive news about the proposed National Music Centre (NMC) in Wellington – a project that is crucial to the long-term success of the NZSO. Wellington City Council recommitted to completing the project, which includes seismic strengthening of the Town Hall, and to investigating a new build on the site of the Municipal Office Building and the Civic Administration Building. We welcomed the words of Wellington Mayor Andy Foster:

The National Music Centre is an exciting partnership between the Council, Victoria University of Wellington and the New Zealand Symphony Orchestra. It will hugely strengthen our reputation as the Creative Capital and bring more life to the heart of our city, Te Ngākau Civic Square.

Housing the other anchor tenants, Te Kōkī/New Zealand School of Music and Orchestra Wellington, the NMC will provide the NZSO with its first-ever permanent home, enabling the entire NZSO team to be located in one place and, through state-of-the-art recording facilities, enable the NZSO to realise significant commercial opportunities. The NMC will be an institution of significance both for Wellington and nationally, strengthening the city’s and Aotearoa New Zealand’s international reputation for music and the wider performing arts.

In conclusion, our sincere thanks go to the Board, musicians and support team at the NZSO who steered the ship through unprecedented turbulence in 2020, thereby enabling all New Zealanders to access musical excellence – thus reinforcing that the NZSO is truly “he piki kōtuku ki ō tātou mātunga, he mapihi maurea ō tātoa taringa – a heron plume for our heads, and treasure for our ears.”

We also express our deep gratitude to the Crown who is our key funder through the Ministry for Culture and Heritage and, along with our donors, subscribers and sponsors, generously enables us to be world-class music makers who share the greatest music ever made and to be crucial agents of change in communities, working to shape a better Aotearoa New Zealand.

Ko te tūmanako e whakamārama ana koutou ngā mahi o tēnei hui-a-tau o te Tira Pūoro o Aotearoa. Nō reira kei ngā rau rangatira huri rauna i te motu, tēnā ra koutou katoa.

Laurence Kubiak Peter Biggs MAICD, GAICD CNZM Chair/ Heamana CEO/Kaihautū

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Schools Concert, NZSO Engage: Palmerston North

Digital and Beyond: A Year of Innovation

Existing fully in the digital world is now a way of life for the NZSO. To date, national and international streaming views total just under 4 million, with 20% of those views coming from international audiences. The challenge is how to innovate constantly in terms of digital engagement and how to open up an additional revenue stream from this new channel.

However, digital streaming was only one of a number of innovations actioned by the NZSO in 2020, which included these highlights:• Successfully piloting a new access platform

– Setting Up Camp. Over two weeks in March, the NZSO visited five communities – Greater Wellington, Wairarapa, Palmerston North, Tauranga and Hamilton – seeking to deepen the Orchestra’s connection with regional communities, including reaching more diverse audiences through community workshops, masterclasses, relaxed concerts, school concerts, intimate performances of traditional repertoire and informal musical engagement.

• Collaborating with Read NZ Te Pou Muramura to launch Storytime, a video series of much-loved Aotearoa New Zealand children’s books, featuring a well-known narrator and the NZSO accompanying the narration with original music composed by New Zealanders Claire Cowan and Tane Upjohn-Beatson. The series, which introduced children to music and to orchestral instruments in a fun and accessible way, included Tio Tiamu/The Smelly Giant by Kurahau, which was told in te reo Māori and made available during Māori Language Week.

To date, the series of five stories has received 357,000 views and prompted many favourable comments:

What a fabulous story time and introduction to the wonderful instruments that make up an orchestra. I sent the link to my great niece (3 years old) and great nephews’ (6 years old) parents and their Nana (my sister, a retired librarian in Whistler) and Pops in Vancouver. They passed the link on too to their friends, so there were five families that watched it. They loved the close-ups of the instruments. The family and friends want to watch it again. Congratulations on a wonderful occasion to listen to great stories and the wonderful introduction to the orchestra.

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2020 Highlights2020 He Tirohanga Whānui

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• Nationwide mass participation digital events such as providing music on Anzac Day (which was also used by all of the Aotearoa New Zealand’s international Embassies and High Commissions) and the online nationwide rendition of Pōkarekare Ana sung by huge numbers of Kiwis both at home and overseas.

• Holding Open Doors pilot activity at the Michael Fowler Centre in Wellington before the Spectacular concert in November 2020, designed to broaden the concert experience and engage with diverse local audiences. This included instrument demonstrations for preschool and primary school students, masterclasses for university music majors and an introduction workshop on conducting by guest conductor Gemma New, ably assisted by students from the New Zealand School of Music.

• A collaboration with Te Papa Tongarewa/Museum of New Zealand through presenting mini-concerts featuring works by international and Aotearoa New Zealand composers.

• The development of a new vision/mission/values to guide the Orchestra over the next five years as it focuses on being more audience-driven and fit for purpose for a changing Aotearoa New Zealand.

Amid a challenging and complex year, the NZSO also sought to achieve artistic excellence across a range of concerts and performances.

In the digital space, the Orchestra streamed 70 concerts, performances and education initiatives, of which 58 were totally new content.

As often happens, unexpected challenges created rich opportunities. Via a range of branded digital programmes such as Play Our Part, Bach Sei Solo and Music Room, NZSO fans were able to get up close and personal with musicians as they performed from their own homes and curated venues, prompting positive responses from the public:

I have watched tonight’s live performance from the Michael Fowler Centre and reflected how much I enjoyed it, after having followed all the live-streamed performances since lockdown began. There is nothing like the excitement of live music, but I was charmed and delighted by being invited into some of the musicians’ own homes during lockdown and being introduced to them and sometimes their families. It was so interesting seeing them close up, relaxed and informal and getting to know them more as people as they presented their pieces. The experience became intensely personal, and tonight I was able to spot individuals within the whole orchestral line-up as they had become like familiar friends.

Anzac Day

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13


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Suite from Der Rosenkavalier. For the concert finale, all soloists joined with members of the Voices New Zealand Choir, more than 100 school children and the audience to sing the beloved waiata Pōkarekare Ana.

• In July, NZSO Concertmaster Vesa-Matti Leppänen and musicians from the NZSO presented a memorable performance of Bach’s Goldberg Variations with guest fortepianist Stephen De Pledge at the Michael Fowler Centre in Wellington. The Variations were performed on a variety of instruments, leading one reviewer to state that “there was genuine joy in hearing a new angle of a familiar set of melodies, a new world of sonic possibilities, a new light cast on a familiar landscape.” Another reviewer added that “the overall effect was startling in its variety and, had Bach been observing from on high, I’m sure he would have been delighted”.

• The focus on Bach continued later in the year with the NZSO’s Bach Extended tour, which brought the glorious music of Johan Sebastian Bach and two of his gifted sons – Carl Philipp Emanuel and Wilhelm Friedemann Bach – to six centres across the North and South Islands over late October and early November. Again, this was the brainchild of Vesa-Matti Leppänen and featured six works performed by 30 musicians, including renowned pianist Deidre Irons on fortepiano. Described by reviewers as “a very novel and interesting enterprise,” the tour was greeted by enthusiastic audiences.

• In the months when the NZSO was able to perform and tour, the Orchestra took the opportunity to present a range of large symphonic works performed by a full-size orchestra, including Prokofiev’s Symphony No. 5, Tchaikovsky’s Symphony No. 6 (Pathétique) and Symphony No. 5, Beethoven’s Symphony No. 3 (Eroica), Mozart’s Symphony No. 40, Haydn’s Symphony No. 64 and Sibelius’ Symphony No. 5. These works were performed across Auckland, Wellington, Dunedin, Christchurch, Napier, Taupō and Tauranga. Due to border closures preventing scheduled international conductors travelling to New Zealand, the NZSO’s Principal Conductor in Residence Hamish McKeich was a superb substitute, and Maestro McKeich deserves sterling and prolonged applause for his

Public Concert Highlights

These were some of the highlights throughout the year:• The NZSO opening the New Zealand

International Festival of the Arts in Wellington with a performance of Henryk Górecki’s phenomenally popular Symphony No. 3 Symphony of Sorrowful Songs under the baton of renowned Estonian-born conductor Kristjan Järvi and featuring Syrian soprano Racha Rizk. The concert also featured performers from the celebrated New Zealand MAU company. The NZSO was then honoured to join Maestro Järvi a second time for Glass/Richter/Järvi. The concert of contemporary works featured German composer Max Richter’s Infra and the New Zealand premiere of American composer Philip Glass’s Águas da Amazônia. The concerts won critical acclaim, with the Dominion Post declaring: “What a performance! Conductor Järvi drew from the NZSO … playing of tremendous verve and awesome virtuosity.”

• The NZSO was the first full-sized orchestra in the world to perform to a live audience in a concert hall since the COVID-19 pandemic. The Ngū Kīoro… Harikoa Ake – Celebrating Togetherness concert, a partnership with Wellington City Council, was a musical celebration of the enormous effort New Zealanders made to protect the vulnerable and manage COVID-19. Acclaimed vocalist and composer Maisey Rika, exceptional taonga pūoro player Horomona Horo, internationally renowned tenor Simon O’Neill, star soprano Eliza Boom, singers from the award-winning Voices New Zealand Chamber Choir and schools in the Wellington region led by NZSO Principal Conductor in Residence Hamish McKeich performed an exhilarating repertoire of music from the NZSO’s successful 2019 An Instrumental Voyage Pae Tawhiti, Pae Tata tour. The Orchestra also brought two great New Zealand works to life – the first movement from Gareth Farr’s rousing masterpiece From the Depths Sound the Great Sea Gongs and John Psathas’s ecstatic Tarantismo. Simon O’Neill and Eliza Boom performed some of the best-known highlights from three great operas: Bizet’s Carmen, Puccini’s La Bohème and Verdi’s Otello. The full power of the Orchestra was on show for Richard Strauss’s inspirational Goldberg Variations, Palmerston North


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in pale, concentrated energy, had complete control over the stunning orchestral writing of Handel’s famous Messiah.”

• Originally scheduled for July, the NZSO National Youth Orchestra (NYO) concert at the Michael Fowler Centre in Wellington took place in December, along with mentoring and rehearsal sessions with NZSO musicians and Maestro McKeich. The NYO consists of young musicians under the age of 25 who meet annually to rehearse and perform large symphonic repertoire in Wellington over the course of a week. The musicians are selected by taped audition, and for many, this is the one occasion each year when they get to work with a full orchestra and professional conductors and soloists. The NYO concert consisted of an uplifting repertoire of contemporary and classical New Zealand compositions by Lissa Meridan and Joshua Pearson, along with great classics by Tchaikovsky, Prokofiev and Arturo Márquez. Now in its 61st year, the importance of this programme to young musicians in New Zealand is evident by the fact that many professional musicians, including nearly half the NZSO musicians, are alumni of this programme.

• Alert levels during the year permitted the NZSO to present live only two of the Orchestra’s highly popular Shed Series concerts led by Principal Conductor in Residence Hamish McKeich – both these concerts were in Wellington. Unfortunately, the Shed Series concert scheduled for Auckland had to be cancelled. The Shed concert under the baton of Gemma New coincided with the August Alert Level 2 and was revamped for digital release.

• In 2020, the NZSO performed 45 New Zealand works, either for live or digital audiences. An additional eight works were workshopped and recorded within the SOUNZ NZ Composer Sessions, and eight students’ compositions were workshopped and recorded as part of our NZSO Todd Young Composer project.

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Ngū Kīoro… Harikoa Ake – Celebrating Togetherness, Wellington

willingness and professionalism when called upon as a replacement. Other NZSO musicians also gave world-class performances when international soloists were unable to join the Orchestra – in particular, Andrew Joyce, Section Principal Cello, who gave a deeply moving performance of Elgar’s Cello Concerto in E Minor and Vesa-Matti Leppänen who performed Sibelius’ Violin Concerto in D Minor flawlessly – thereby affirming once again that the quality of the NZSO is of international standard. The NZSO also drew upon Aotearoa New Zealand’s considerable resource of world-class talent, including performers Anna Leese, Frederick Jones, Emma Pearson, Kevin Keys, Michaela Cadwgan, Troy Kingi, Sarah Court, Robert Tucker, Jenny Wollerman, Jared Holt, Jason Kerrison and Tami Neilson, to present its performances during 2020.

• We were fortunate that two of our originally programmed international conductors were able to perform with the NZSO in 2020. Miguel Harth-Bedoya, who the Orchestra knows well, was unfortunately limited to one public concert appearance in the Michael Fowler Centre in September due to alert level changes. However, Maestro Harth-Bedoya was indefatigable when it came to being involved in the NZSO’s education initiatives and, with the Orchestra, performed a range of works recorded for digital streaming. We were fortunate to be able also to access Holly Mathieson, a Kiwi expatriate, achieving notable success conducting internationally as a potential substitute for Maestro Harth-Bedoya if he was not able to visit or conduct in Aotearoa New Zealand. During her time here, Holly generously participated in the NZSO’s education initiatives and made an invaluable contribution. New Zealand-born conductor Gemma New made her NZSO debut with a live audience in November in both Wellington and Auckland. Maestra New made her online debut with the NZSO in August when alert level changes meant that the scheduled concert performances had to be cancelled. Gemma also conducted the NZSO’s performance of Handel’s Messiah in December, resulting in highly positive media coverage: “From the first moments it felt like we were in the hands of a master. Conductor Gemma New, a study


16 17

NZSO National Youth Orchestra

Education and Developing Future Musicians

Arguably, the Orchestra is one of the largest contributors to musical education and development of young musicians in Aotearoa New Zealand, and through its education initiatives, the NZSO opens up significant career and life-enhancing opportunities for our country’s young people, tamariki and rangatahi.

In addition to the NZSO NYO, the NZSO comprehensive education programme in 2020 included these highlights:• The 16th Annual Todd Corporation Young

Composers Award took place in Wellington on 27 and 28 November. This programme nurtures and mentors young composers, culminating in a recording and performance of their compositions with the full NZSO.

• Due to COVID-19, the NZSO invested in expanding its mentoring programme for secondary school music students with online lessons, feedback sessions and career guidance. This increased our participation rate from 15 talented students to 64 across a diverse range of communities nationwide, all of whom participated in multiple online sessions throughout lockdown.

• NZSO musicians created a virtual Music Room, with education-related videos for teachers and students to learn the fundamentals of music. This included instructional videos on how to construct instruments at home and subsequently use them to explore rhythm, harmony, melody, dynamics and timbre.

• A new initiative that proved successful in 2020 was the development of a NZSO Fellowship Conducting Programme. Four young enthusiastic graduates were mentored by our Principal Conductor in Residence Hamish McKeich as well as guest musicians Miguel Harth-Bedoya and Holly Mathieson and received invaluable time in front of the NZSO musicians.

• NZSO musicians also generously devoted significant hours of their own time to free community music education and to nurturing musical talent among disadvantaged communities through entities such as Arohanui Strings, Tironui Music Trust, Sistema Toi Akorangi, Virtuoso Strings and the Or-ches-trate! programme.

Kirstin Eade, Associate Principal Flute

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Members of the NZSO Board Ngā Mema o te Poari o NZSO

Laurence Kubiak MAICD, GAICD Chair

Geoff Dangerfield QSO Deputy Chair

Clare Murray

Daniel Wong

Ainsley Walter

Edwin Read

Carmel Walsh

Chief Executive Officer Kaihautū

Peter Biggs CNZM

Concertmaster Te Kaiwhakatangi Tōiri Matua

Vesa-Matti Leppänen

Heads of Department Ngā Ūpoko o ngā Tari

Richard Grant Head of Corporate Services

Lucrecia Colominas Head of Artistic Planning

Adán Tijerina Head of Marketing

Penelope England Head of Development

Jane Bulpin Head of People & Delivery

Craig Thorne Head of Projects

The New Zealand Symphony Orchestra (NZSO) is an autonomous Crown entity. The Board of the NZSO appointed Peter Biggs as the Chief Executive Officer in May 2020.

Organisational StructureTe Hanga o te Whakahaere

as at 31 December 2020

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Ellen Deverall, Associate Principal Clarinet

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Governance StatementHe Tauākī Kāwanatanga

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Governing Board Te Poari Whakahaere

The Board is appointed by the Responsible Minister (the Minister for Arts, Culture and Heritage, as at 31 December Hon. Carmel Sepuloni) and is comprised of seven non-executive members.

The appointments are made having regard to the need for members to have among them appropriate governance skills and an awareness of artistic matters as relevant to the role of the Board. The Board meets regularly in accordance with a schedule prepared before the start of each year.

The Board met eight times in 2020.

Board Remuneration Ngā Utu o te Poari

The Board remuneration is set by the Minister consistent with the guidelines set by the Public Service Commission and Cabinet Office guidelines.

The remuneration of the Board members is detailed in the notes to the financial statements.

Board Audit Committee Te Komiti Arotake o te Poari

The Audit Committee comprises three Board members and one independent member. The Chair of the Audit Committee is Deputy Chair of the NZSO Board. The Committee reports to the Board. The purpose of the Committee is to assist in discharging the Board’s responsibilities for financial reporting and regulatory compliances. The Committee met twice in 2020.

Board Delegation to the Chief Executive Officer Te Kanohi o te Poari ki te Tumu Whakarae

The Board has been authorised by the Responsible Minister to manage the business of the NZSO and has delegated the day-to-day operational authority to the Chief Executive Officer (CEO). The CEO’s terms and conditions of employment are determined by the Board in consultation with the State Services Commission. The CEO’s remuneration for the year is included in the notes to the financial statements.

Management Ngā Kaiwhakahaere

The CEO has appointed a seven-person Strategic Leadership Team (SLT), which meets on a regular basis to discuss strategic and operational issues and is a key forum for decisions to be made.

The SLT members who report directly to the CEO, are:• Concertmaster (Vesa-Matti Leppänen)• Head of Corporate Services (Richard Grant)• Head of Artistic Planning (Lucrecia Colominas)• Head of Marketing (Adán Tijerina)• Head of Development (Penelope England)• Head of People and Delivery (Jane Bulpin)• Head of Projects (Craig Thorne)

The SLT’s remuneration is set by the CEO in consultation with the Chair of the Board. The cumulative total for key management personnel compensation is included in the notes to the financial statements.

Conflicts of Interest Ngā Tukinga Take Whaiaro

Each member of the Board and SLT has made a full disclosure of their interests, and this is updated at every Board, Audit Committee and SLT meeting.

If an interest is declared relating to a paper before or during any meeting, the member may be excluded from discussions and decision making on the matter.

Delegated Financial Authorities Ngā Mana Ahumoni kua Tohua

The Board has approved a policy for the delegation of financial authority to the administrative staff of the NZSO. All operational spending is monitored through a budget system that is approved by the Board before the commencement of the financial year. The CEO and appropriate Heads of Department (HODs) hold delegated authorities. The HODs may delegate part or all or a specified area of their budget to a direct report to them. However, the HODs will retain overall responsibility for the budget.

Laurence Reese, Section Principal Timpani

Statement of ResponsibilityHe Tauākī o ngā Haepapa

The Board of the New Zealand Symphony Orchestra is responsible for the preparation of the financial statements and statement of service performance, and for the judgements in them.

The Board is responsible for any end-of-year performance information provided by the New Zealand Symphony Orchestra under section 19A of the Public Finance Act 1989.

The Board is responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the financial reporting.

In the opinion of the Board, the financial statements and statement of service performance fairly reflect the financial position and operations of the New Zealand Symphony Orchestra for the year ended 31 December 2020.

Signed

2322

Laurence Kubiak MAICD, GAICD Chair/Heamana

22 April 2021

Geoff Dangerfield QSO Deputy Chair/Heamana TuaruaChair/Heamana Audit Committee/Komiti Arotake 22 April 2021

Audience surveys rate NZSO performances as high quality

Audience demand for NZSO performances continues to grow

New New Zealand works are created and performed

Reviews of recordings rate NZSO performances highly

NZSO performances engage with audiences from diverse communities

New New Zealand student compositions are created and workshopped

Statement of Service PerformanceHe Tauākī o ngā mahi

The results presented in the Statement of Service Performance have been impacted by the COVID-19 pandemic. The main impact is not being able to present live concerts throughout New Zealand under Alert Levels 2–4.

The following report highlights where this has impacted the results for the year under review.

2524

OUTCOME: Quality New Zealanders inspired by high-quality symphonic music

Impact indicator Impact measure Actual 2020 Budget 2020 Actual 2019 Target achievement

OUTCOME: Coverage New Zealanders have ready access to symphonic music


OUTCOME: Development New Zealanders create new symphonic music


Average grading achieved for quality of performance in surveys of NZSO audiences

Total audience attendances for NZSO performances Does not include non-ticketed events

Number of new New Zealand works performed by NZSO

Average grading achieved for NZSO recordings released and reviewed

Total number of communities represented in NZSO audiences for live performances

Number of new New Zealand student compositions workshopped by NZSO

9.3/10

25,544

14

9/10

22

8

9/10

74,211

4

9/10

35

8

9.3/10

84,480

6

0/10 No

recordings released

72

8

Yes

No Impact of concerts

cancelled due to COVID-19

restrictions

Yes

Yes

No Impact of concerts

cancelled due to COVID-19

restrictions

Yes

Beiyi Xue, First Violin

Output Services Revenue and ExpenditureThe New Zealand Symphony Orchestra has one output class – Orchestral Services.

Statement of Performance

National Music Centre

2726

Actual 2020 Budget 2020 Actual 2019 $000 $000 $000

Specific objective Actual 2020 Actual 2019 Target

Revenue Crown

Revenue other

Total revenue

Expenses

Net result

Complete the NZSO portion of the fit-out of the Wellington Town Hall component of the National Music Centre

16,326

2,286

18,612

(17,090)

1,522

At 31 December 2020, the NZSO portion of the fit-out of the Wellington Town Hall component of the National Music Centre had not yet commenced as Wellington City Council has not completed the seismic strengthening work

16,326

4,094

20,420

(20,420)

0

At 31 December 2020, the NZSO portion of the fit-out of the Wellington Town Hall component of the National Music Centre had not yet commenced as Wellington City Council has not completed the seismic strengthening work

14,736

5,617

20,353

(21,113)

(760)

Delivered against the updated plan

Provide the public of New Zealand with live and recorded performances of symphonic music performed to an international standard

Provide an orchestra that is highly skilled and artistically imaginative

Provide an orchestra that has strong community support

New Zealand Symphony Orchestra Act 2004 section 8

Specific objectives

Service performance actual 2020Outcome

Service performance budget 2020

Service performance actual 2019

Provide quality live performances throughout the country. This measure excludes non-ticketed events.

Provide quality live performances throughout the country

NZSO presented 35 live performances during the period.

Refer to performance quality measures on page 29





Coverage

Quality

Provide professional development opportunities for existing NZSO musicians

Live performances reach a large number of communities

Concert season and recordings include a wide variety of different programmes

NZSO presented concerts and recordings of 41 different programmes during the period

2 Scholarships were awarded, but due to COVID-19 were not used

The NZSO performed in 15 different centres during the period. The budgeted number of communities was not achieved due to COVID-19 restrictions.

35 different performance and recording programmes presented

NZSO presented concerts and recordings of 42 different programmes during the period

4 professional development scholarships or bursaries awarded

17 different New Zealand communities have live performances

The NZSO performed in 18 different communities during the period

4 scholarships awarded

Development

Coverage

Development

29

Statement of Performance

Be a leading New Zealand performing arts organisation with a role in the development of a distinctly New Zealand cultural environment

New Zealand Symphony Orchestra Act 2004 section 8

Specific objectives

Service performance actual 2020Outcome



Provide opportunities for the training and development of young and emerging musicians and collaborate with other arts and cultural organisations

1 NZSO National Youth Orchestra performance,

65 students participated in mentor programmes,

7 students participated in fellowship programmes,

6 masterclasses were held with NZSO players or guest coaching,

12 collaborative performances with other arts organisations

2 NZSO National Youth Orchestra performances,

12 students in NZSO mentor programmes,

6 students in NZSO Fellowship programmes,

5 masterclasses with NZSO players or guest artists,


2 NZSO National Youth Orchestra performances,

14 students participated in mentor programmes,

5 students participated in fellowship programmes,

3 masterclasses were held with NZSO players or guest coaching,


Development

Provide performance opportunities for New Zealand musicians, whether as members of the NZSO or as soloists

New Zealand artists regularly perform with the NZSO

20 different New Zealand artists performed with the NZSO during the period

20 New Zealand artists perform with the NZSO

18 different New Zealand artists performed with the NZSO during the period

Development

Promote and encourage New Zealand musical composition and composers

Create workshop opportunities for New Zealand

Profile New Zealand compositions in public performances and recordings

The NZSO played a total of 45 New Zealand compositions in 2020

8 compositions were workshopped during the year – the budgeted number of compositions was not achieved due to COVID-19 restrictions

20 New Zealand works are performed

The NZSO played a total of 22 New Zealand compositions in 2019

17 compositions are workshopped

17 compositions were workshopped during the year

Development

Development

Measurement of Quality Service Performance

Regular audience surveys are conducted and performance quality is polled

Independent international reviews of live and recorded performances assess quality of orchestra performance

Reviews are from a recognised international reviewer of an international publication

International artists polled on quality of NZSO and performances (exit polling)

Process Target




Audiences recognise NZSO performances are of international quality

International reviewers recognise NZSO performances are of international quality

Artists recognise NZSO performances are of international quality

New Zealand reviewers recognise NZSO performances are of international quality

9.3/10

In surveys conducted between July and November for concerts in these months, 1,166 respondents out of 14,953 attendees had an overall satisfaction rate of 9.3/10 for the NZSO concerts attended – the surveys covered 19 performances during 2020, and the number of surveys sent out was 2,991, with 1,166 or 39% responding

0/10

There were no international reviews in 2020

9.75/10

Between January and December 2020, 2 international artists completed exit polling and both rated the NZSO as extremely good

9.2/10

All media coverage including concert reviews are collated and accorded a satisfaction/ favourability rating on a scale of 1–10, and a summary of articles are presented to the Board – there was no Music Director during 2020 so no summary was provided to this position

9.3/10

In surveys conducted between August and October for concerts in these months, 1,126 respondents out of 21,021 attendees had an overall satisfaction rating of 9.3/10 for the NZSO concerts attended – the surveys covered 8 performances in 2019, and the number of surveys sent out in 2019 was 1,126, with 100% responding

0/10

There were no international reviews in 2019

9.8/10

Between January and December 2019, 10 international artists completed exit polling and all rated the NZSO as extremely good or good

9.7/10

All media coverage including concert reviews are collated and accorded a satisfaction/favourability rating on a scale of 1–10, and a summary of articles and ratings are presented to senior management, the Music Director and the Board

9/10

9/10

9/10

9/10Critical reviews by New Zealand media of live performances assess quality of orchestra performance

28

3130

The accompanying notes & policies on pages 33 to 47 form an integral part of these financial statements.

Explanations of major variances against budget are included in Note 19.

Statement of Comprehensive Revenue and ExpenseFor the year ended 31 December 2020

Statement of Changes in EquityFor the year ended 31 December 2020

Actual 2020 Budget 2020 Actual 2019 Notes $000 $000 $000

Actual 2020 Budget 2020 Actual 2019 $000 $000 $000

Revenue

Concert Revenue

Interest Revenue

Other Revenue

Revenue earned by the NZSO

Crown Funding

TOTAL REVENUE

Expenditure

Personnel Costs

Depreciation and Amortisation Expense

Other Expenditure

Total Expenditure

Net Surplus/(Deficit)

Total Comprehensive Revenue and Expense

Balance as at 1 January

Total Comprehensive Revenue and Expense for the year

Equity Contribution from the Crown

Balance as at 31 December

1,036

22

1,228

2,286

16,326

18,612

11,838

80

5,172

17,090

1,522

1,522

2,293

1,522

500

4,315

1

2

6

3

1,921

120

2,053

4,094

16,326

20,420

11,817

127

8,476

20,420

-

-

1,998

-

1,000

2,998

3,693

61

1,864

5,618

14,736

20,354

11,252

110

9,752

21,114

(760)

(760)

753

(760)

2,300

2,293

Statement of Financial PositionAs at 31 December 2020


Equity

General Funds

Total Equity

Current Assets

Cash and Cash Equivalents

Trade Receivables and other Receivables

Prepayments

Total Current Assets

Non Current Assets

Property, Plant and Equipment

Intangible Assets

Total Non-Current Assets

Total Assets

Current Liabilities

Trade Payables And Other Payables

Employee Entitlements

Total Current Liabilities

Non-Current Liabilities


Total Non-Current Liabilities

Total Liabilities

Net Assets

4,315

4,315

4,616

507

111

5,234

1,317

8

1,325

6,559

860

1,182

2,042

202

202

2,244

4,315

4

5

6

6

7

8

8

2,988

2,988

2,634

106

148

2,888

2,774

-

2,774

5,662

1,430

1,015

2,445

229

229

2,674

2,988

2,293

2,293

2,954

820

77

3,851

1,224

25

1,249

5,100

1,616

988

2,604

203

203

2,807

2,293



Statement of Cash FlowsFor the year ended 31 December 2020


Cash Flows From Operating Activities

Receipts from Customers and Sponsors

Interest Received

Government Funding

Payments to and on behalf of employees

Payments to Suppliers

Net Goods and Services Tax

Net Cash Flows from Operating Activities

Cash Flows from Investing Activities

Purchases of Property, Plant and Equipment

Purchases of Intangible Assets

Net Cash Flows from Investing Activities

Cash Flows from Financing Activities

Equity Contribution

Net Cash Flows from Financing Activities

Net Increase / (Decrease) In Cash And Cash Equivalents

Cash And Cash Equivalents At Beginning Of The Year

Cash And Cash Equivalents At End Of The Year

Represented by: Cash & Cash Equivalents

Bank

Term Deposits <= 3 months

Total

2,284

22

16,326

(11,630)

(5,496)

(186)

1,320

(158)

-

(158)

500

500

1,662

2,954

4,616

4,616

-

4,616

4

3,906

120

16,326

(11,802)

(8,520)

-

30

(1,100)

-

(1,100)

1,000

1,000

(70)

2,704

2,634

634

2,000

2,634

3,921

61

14,736

(11,326)

(8,564)

(38)

(1,210)

(110)

(1)

(111)

2,300

2,300

979

1,975

2,954

2,954

-

2,954



3332

Notes to the Financial Statements For the year ended 31 December 2020

STATEMENT OF ACCOUNTING POLICIES

Reporting Entity

The NZSO has designated itself as a public benefit entity (PBE) for financial reporting purposes.

The financial statements for NZSO are for the year ended 31 December 2020, and were approved by the board on 22 April 2021.

Basis of Preparation

The financial statements of the NZSO have been prepared on a going-concern basis and the accounting policies have been applied consistently throughout the period.

Under the Crown Entities Act 2004 Part 4, section 136 (1), the financial year for a Crown Entity (other than a school board of trustees or a tertiary education institution) is defined as “the 12 months ending on the close of 30 June or any other date determined for that entity by the Minister of Finance.” As of 9 September 2011, the NZSO’s financial year closes on 31 December, as approved by the Minister of Finance.

Statement of Compliance

The financial statements of the NZSO have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).

The NZSO is a tier 2 entity and the financial statements have been prepared in accordance with PBE standards.

The financial statements have been prepared in accordance with PBE standards Reduced Disclosure Regime (PBE Standards RDR). The criteria under which the NZSO is eligible to report in accordance with PBE standards RDR are (1) that the NZSO has no public accountability as the NZSO does not issue debt or equity instruments or hold assets in a fiduciary capacity and (2) that the NZSO is not large.

Presentation Currency and Rounding

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue

The specific accounting policies for significant revenue items are explained below:

Funding from the Crown (Government funding)

The NZSO is significantly funded from the Crown. This funding is restricted in its use for the purpose of the NZSO meeting the objectives specified in its founding legislation (the New Zealand Symphony Orchestra Act 2004) and the scope of the relevant appropriations of the funder.

The NZSO recognises such funding as revenue at the point when control of the resource passes to the NZSO.

The NZSO considers the Crown payments made by the Ministry for Culture & Heritage to the NZSO meet the applicable control test for recognition when two events have occurred: (1) the responsible Minister has formally approved a Crown Payment from the Ministry to the NZSO of all (or a specific portion) of an existing appropriation that relates to an agreed Statement of Performance Expectations; and (2) the agreed Statement of Performance Expectations is effective.

The fair value of revenue from the Crown has been determined to be equivalent to the amounts due in the funding arrangements. In the NZSO’s view, the recognition of Government funding in this way meets the requirements of the applicable accounting standard (PBE IPSAS 23, Revenue from Non-Exchange Transactions).

Grants Received

Grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grants are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied. Grant revenue is aggregated with other sponsorship revenue.

34

Contra Sponsorship Received

Sponsorship revenue can be received by the NZSO in cash and/or non-cash (contra) exchange transactions. Revenue is recognised when it becomes receivable except when, in the case of contra sponsorship, there is a realistic expectation that those sponsored services will not be realised.

Where the contra sponsorship generates a physical asset (rather than services) as consideration, the asset is recognised at fair value and the difference between the consideration provided and fair value of the asset is recognised as revenue. The fair value of such assets is determined as follows:

• For new assets, fair value is usually determined by reference to the retail price of the same or similar assets at the time the asset was received.

• For used assets, fair value is usually determined by reference to market information for assets of a similar type, condition and age.

Interest Revenue

Interest revenue is recognised using the effective interest method.

Provision of Services/Concert Revenue

Services provided to third parties on commercial terms are exchange transactions. Revenue from these services is recognised in proportion to the stage of completion at balance date. Concert revenue received for the NZSO’s 2021 performances is revenue in advance at balance date and will be fully recognised as revenue in the 31 December 2021 financial statements.

Foreign Currency Transactions

All foreign currency transactions (including those for which forward foreign exchange contracts are held) are translated into New Zealand dollars (the functional currency) using the spot exchange rates prevailing at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the surplus or deficit.

Operating leases

Operating lease payments, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are recognised as expenses on a straight-line basis over the lease term.

Receivables

Short-term receivables are recorded at their face value, less any provision for impairment. A receivable is considered impaired when there is evidence that the NZSO will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected.

Investments

Term deposits

Investments in bank term deposits are initially measured at the amount invested. After initial recognition, investments in bank deposits are measured at amortised cost using the effective interest method, less any provision for impairment.

Property, plant and equipment

Property, plant and equipment consist of the following asset classes: computer hardware, leasehold improvements, musical instruments, studio equipment, furniture and office equipment and music library. All assets classes are measured at cost, less accumulated depreciation and impairment losses.

Additions

The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to the NZSO and the cost of the item can be measured reliably. Work in progress is recognised at cost less impairment and is not depreciated. In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

35


Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are reported net in the surplus or deficit.

Subsequent Costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the NZSO and the cost of the item can be measured reliably.

The costs of day-to-day servicing of property, plant, and equipment are recognised in the surplus or deficit as they are incurred.

Depreciation

Depreciation is provided on a straight-line basis on all items of property, plant and equipment at rates calculated to write-off the cost (or valuation), to their estimated residual value over their estimated useful lives. Leasehold alterations are depreciated over the remaining period of the lease agreement. The useful lives and associated depreciation rates of major classes of property, plant, and equipment have been estimated as follows:

Leasehold Alterations 3–15 years 6.67%–33.33%

Computer Hardware 3 years 33.33%

Studio Equipment 10 years 10%

Furniture and Office 15 years 6.67% Equipment

Musical Instruments 10 years 10% percussion only

Musical Instruments 25 years 4% all other

Library Music Manuscripts Not depreciated

Intangibles Assets

Software acquisition and development

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the NZSO are recognised as an intangible asset. Direct costs include the software development and directly attributable employee costs. Staff training costs are recognised as an expense when incurred.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Acquired Computer Software 3 years 33.33%

Developed Computer Software 3 years 33.33%

Impairment of Property, Plant and Equipment and Intangible assets

The NZSO does not hold any cash-generating assets. Assets are considered cash-generating where their primary objective is to generate a commercial return.

Non-cash-generating assets

Property, plant and equipment and intangible assets held at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value will exceed the recoverable amount.

The recoverable amount is the higher of an asset’s fair value less costs to sell and the depreciated replacement costs for the assets.

Impairment losses are recognised in the surplus or deficit.

36

Payables

Short-term payables are recorded at their face value.


Short-term employee entitlements

Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at, balance date, deferred and retiring leave (vested and available to be cashed-in) and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences. A liability and an expense are recognised for bonuses where there is a contractual obligation and a reliable estimate of the obligation can be made.

Long-term employee entitlements

Employee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders the related service, such as long service leave have been calculated on an actuarial basis. The calculations are based on:• likely future entitlements accruing to

staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlement information;

• the present value of the estimated future cash flows.

Sick leave, annual leave, and vested long-service, retiring and deferred leave are classified as a current liability. Non-vested long-service leave expected to be settled within 12 months of balance date is classified as a current liability. All other employee entitlements are classified as non-current liabilities.

Superannuation Schemes

Defined contribution schemes

Obligations for contributions to KiwiSaver, the Government Superannuation Fund, the State Sector Retirement Savings Scheme and the NZSO’s Tower Superannuation Scheme are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit as incurred.

Defined benefit schemes

The NZSO makes employer contributions to the Defined Benefit Plan Contributors Scheme (the scheme), which is managed by the Board of Trustees of the National Provident Fund. The scheme is a multi -employer defined benefit scheme.

Insufficient information is available to use defined benefit accounting, as it is not possible to determine from the terms of the scheme the extent to which the surplus/deficit will affect future contributions by individual employers, as there is no prescribed basis for allocation. The scheme is therefore accounted for as a defined contribution scheme.

Equity

Equity is measured as the difference between total assets and total liabilities. There is no basis on which to disaggregate equity, and it is recognised in total as general funds.

Goods and Services Tax (“GST”)

These financial statements are prepared on a GST exclusive basis with the exception of trade receivables and trade creditors which are stated inclusive of GST. The net amount receivable (or payable) in respect of GST is included as part of other receivables (or other payables). The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of Forecast Cash Flows.

Income Tax

The NZSO is a public authority for the purposes of the Inland Revenue Act. A public authority is exempt from income tax under the Income Tax Act 2007 and, accordingly, no provision has been made for income tax.

37


Budget Figures

The budget figures are those approved by the NZSO board at the beginning of the financial year as disclosed in the Statement of Performance Expectations. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted by the Board in preparing these financial statements.

Critical Accounting Estimates and Assumptions

In preparing these financial statements, the NZSO has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimating useful lives and residual values of property, plant and equipment

At each balance date, the useful lives and residual values of property, plant and equipment are reviewed. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires a number of factors to be considered such as the physical condition of the asset, expected period of use of the asset by the NZSO and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will affect the depreciation expense recognised in the surplus or deficit and carrying amount of the asset in the Statement of Forecast Financial Position. The NZSO minimises the risk of this estimation uncertainty by:

• physical inspection of assets;

• asset replacement programmes;

• review of second-hand market prices for similar assets; and

• analysis of prior asset sales.

The NZSO has not made significant changes to past assumptions concerning useful lives and residual values.

Long service leave

Note 8 provides an analysis of the exposure in relation to estimates and uncertainties surrounding long service leave liabilities. Critical Judgements in Applying Accounting Policies

The NZSO has exercised the following critical judgements in applying accounting policies:

Leases classification

Determining whether a lease agreement is a finance lease or an operating lease requires judgement as to whether the agreement transfers substantially all the risks and rewards of ownership to the NZSO. Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is recognised in the Statement of Forecast Financial Position as property, plant and equipment, whereas, for an operating lease, no such asset is recognised. The NZSO has exercised its judgement on the appropriate classification of equipment leases and has determined no lease arrangements are finance leases.

38

1. Revenue

Grants revenue is categorised as non-exchange where there is no obligation in substance associated with the funding provided to NZSO. The majority of this revenue is received by NZSO either as cash from various gaming and community Trusts and Foundations or as non-cash concert/rehearsal venue subsidies from territorial local authorities. Such revenue is generally only obtained on a (non-recurring) application basis and is contained within a single financial year.

As at 31 December 2020, the NZSO has a staff establishment of 120 Full-Time Equivalent employees made up of 30 administration staff and 90 musicians (2019: 118 Full-Time Equivalent employees made up of 28 administration staff and 90 musicians). At balance date, there were 15 vacancies in the establishment (2019: 10).

No payments were made to employees in relation to the cessation of employment during 2020 (2019: $18,895.34).

Sponsorship revenue is categorised as exchange where there is a substantive obligation associated with the funding provided to NZSO and its value is considered approximately equal. Sponsorship contracts are negotiated between NZSO and the sponsor on arms length commercial terms and the range of services provided to sponsors will differ in type and volume depending on both the amount of sponsorship received and the particular servicing preferences of the sponsor. Sponsorship contracts often span multiple financial years but both the sponsorship revenue and the services provided in return, are usually negotiated for annual cycles and fully delivered within disreet NZSO concert seasons (which correlate with calendar years).

Actual 2020 Actual 2019 $000 $000

877

-

2

12

337

1,228

1,432

249

10

-

173

1,864

Other Revenue

Sponsorship Revenue and Grants

Recording Revenue and Cost Recoveries

Foreign exchange gains, excluding derivatives

Gains on Disposal of Assets

Sundry Revenue

Total Other Revenue

Personnel Costs

Salaries and wages

ACC Levy

Contribution to Superannuation Schemes

Allowances

Recruitment and Training

Total Personnel Costs

2. Personnel Costs Actual 2020 Actual 2019 $000 $000

11,016

40

399

210

173

11,838

10,368

45

371

209

259

11,252

39

Other Expenditure

Direct Expenses from Orchestral activity

Occupancy Costs

Audit Fees for financial statements audit

Board Members fees

Foreign exchange losses, excluding derivatives

General Operating Costs

Total Expenditure

Cash & Cash Equivalents

Cash at bank and on hand

Total Cash & Cash Equivalents

3. Other Expenditure

4. Cash & Cash Equivalents

5. Trade & Other Receivables

Total fees to Audit New Zealand for financial statements audit. No other services from Audit New Zealand were provided (or charged for) during the year.

Cash and cash equivalents includes cash on hand, deposits held on call with banks, and other short-term, highly liquid investments with original maturities of three months or less.

Actual 2020 Actual 2019 $000 $000

Actual 2020 Actual 2019 $000 $000

3,476

358

77

97

1

1,163

5,172

4,616

4,616

459

-

48

507

339

168

507

7,964

358

75

96

-

1,259

9,752

2,954

2,954

820

-

-

820

603

217

820

Trade & Other Receivables

Gross Trade & Other Receivables

Less: Provision for Impairment

GST Receivablve

Total Trade & Other Receivables

Represented by:

Trade Receivables

Other Receivables

Balance at 31 December

Actual 2020 Actual 2019 $000 $000

As at 31 December 2020 all overdue receivables have been assessed for impairment and irrecoverable amounts. The carrying value of receivables approximates their fair value.

6. Property, Plant And Equipment / Intangible Assets

Property Plant and Equipment

Balance at 1 January 2020

Additions

Transfers

Disposals

Balance at 31 December 2020

Accumulated Depreciation


Depreciation expenses

Depreciation-Disposals


Net Book Value

At 31 December 2019

At 31 December 2020

700

12

-

-

712

-

-

-

-

700

712

207

19

-

-

226

-

-

-

-

207

226

648

8

-

(35)

621

510

16

(33)

493

138

128

567

63

-

630

454

21

-

475

113

155

190

50

-

-

240

160

21

181

30

59

302

-

-

-

302

297

-

-

297

5

5

Leasehold Alterations

$000

Computer Hardware

$000

Studio Equipment

$000

Furniture and Office

Equipment $000

Total

$000

Music Library

$000

Capital Work-in-Progress

$000

278

6

-

-

284

247

5

252

31

32

Musical Instruments

$000

There has been no indication of impairment to any item of Property, Plant and Equipment or Intangible Assets.

2,892

158

-

(35)

3,015

1,668

63

(33)

1,698

1,224

1,317

Intangible Assets


Additions

Transfers

Disposals


Accumulated Depreciation


Depreciation expenses

Depreciation-Disposals


Net Book Value

At 31 December 2019

At 31 December 2020

559

-

-

-

559

534

17

551

25

8

Computer Software $000

Total

$000

559

-

-

-

559

534

17

-

551

25

8

Payables under exchange transactions

Trade Creditors

Revenue in Advance

Accrued Expenses

Other Creditors and Payables

Total Payables under exchange transactions

Payables under non-exchange transactions

PAYE Payable

GST Payable

Total Payables under non-exchange transactions

Total Trade Payables and Other Payables

7. Trade Payables and Other Payables Actual 2020 Actual 2019 $000 $000

113

342

195

63

713

147

-

147

860

336

574

191

251

1,352

126

138

264

1,616

All trade creditors are paid within 30 days as the payment terms used by NZSO are 20th of the month following invoice date. Therefore the carrying value of creditors approximate their fair value.

40 41

8. Employee Entitlements Actual 2020 Actual 2019 $000 $000

Provision for Employee Entitlements

Current

Accrued Salary & Wages

Annual Leave

Sick Leave

Long Service Leave

Deferred Leave

Retiring Leave

Total Current

Non-Current

Long Service Leave

Total Employee Entitlements

The present value of the term long service leave obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions.

Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability. The NZSO has used an actuarial model issued for this purpose by The Treasury, effective for 31 December 2020.

A discount rate of 5% (2019: 4.3%) and an inflation factor of 2% (2019:2.92%) were used.If the discount rate were to differ by 1% from the estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $10,000 higher/lower (2019: $33,000).

If the salary inflation factor were to differ by 1% from the estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $8,000 higher/lower (2019: $16,000).

280

724

57

79

3

39

1,182

202

1,384

236

638

57

19

14

24

988

203

1,191

42 43

10. Capital Commitments And Operating Leases

The value of non cancellable rental lease commitments to Wellington City Council for the lease of specified areas of the Michael Fowler Centre are as follows:

The lease commitments to Wellington City Council are for 15 years from 1 June 2014 and end on 31 May 2029.

Actual 2020 Actual 2019 $000 $000

Less than One Year

Between One and Two Years

Between Two and Five Years

Greater than Five Years

Total non-cancellable operating lease

313

313

940

1,069

2,635

313

313

940

1,382

2,948

9. Financial Instrument Categories Actual 2020 Actual 2019 $000 $000

Loans & Receivables

Cash and cash equivalents

Trade Receivables and Other Receivables

Total Loans & Receivables

Financial liabilities measured at amortised cost

Trade Creditors and Other Payables (excluding Revenue in Advance)

Total financial liabilities measured at amortised cost

Financial Liabilities at Fair Value through Surplus / (Deficit)

4,616

507

5,123

518

518

-

2,954

820

3,774

1,042

1,042

-

Fair value hierarchy

Where instruments are recognised at fair value in the statement of financial position, fair values are determined according to the following hierarchy:• Quoted market prices (level 1) – Financial instruments with quoted prices for identical

instruments in active markets.• Valuation techniques using observable inputs (level 2) – Financial instruments with

quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

• Valuation techniques with significant non-observable inputs (level 3) – Financial instruments valued using models where one or more significant inputs are not observable.

The NZSO is also committed to uplift costs for the Wellington Town Hall as part of the National Centre for Music project as follows:

Actual 2020 Actual 2019 $000 $000

Buildings

Total

-

-

76

76

4544

The value of non cancellable rental lease commitments to Peritus Investments Ltd for the lease of NZSO’s Wellington office space in the Findex House, Willis Street, Wellington are as follows:

The lease commitments to Peritus Investments Ltd are for 4 years from 29 May 2017 and end on 28 May 2021.

Actual 2020 Actual 2019 $000 $000

Less than One Year





59

-

-

-

59

141

59

-

-

200

15

15

46

25

101

The NZSO is also committed to an operating lease of musical instruments, payable to The New Zealand Symphony Orchestra Foundation as follows:

The lease period is 15 years from the original lease start date, on individual instrument basis.

Actual 2020 Actual 2019 $000 $000

Less than One Year




Total musical instruments lease commitments

15

15

46

40

116

The value of non cancellable rental lease commitments to Robt Jones Holdings Limited for the lease of NZSO’s Auckland office space in the Southern Cross Building, High Street, Auckland are as follows:

The lease commitments to Robt Jones Holdings Limited are for 3 years and six months from 1 April 2019 to 31 March 2022.

Actual 2020 Actual 2019 $000 $000

Less than One Year





14

4

-

-

18

14

14

4

-

32

The value of non cancellable rental lease commitments to Nicola N Varuhas for the lease of NZSO’s Wellington Music Library space in Boulcoutt Street, Wellington are as follows:

The lease commitments to Nicola N Varuhas are for 3 years and six months from 31 October 2018 and end on 04 May 2022.

Actual 2020 Actual 2019 $000 $000

Less than One Year





35

11

-

-

46

35

35

11

-

81

11. Contingencies

12. Related Parties

13. Key Management Personnel

The NZSO has no contingent liabilities in 2020 (2019: nil).

The NZSO has no contingent assets in 2020 (2019: nil).

The NZSO is an autonomous crown entity, wholly-owned by the Crown.

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect NZSO would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (e.g. Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions.

Related party transactions required to be disclosed

iii) The NZSO transacts with The NZSO Foundation a separate registered charitable trust in which NZSO board members Daniel Wong and Ainsley Walter have been trustees of the NZSO Foundation during the year.

All transactions were carried out on an arms length basis. Total amounts paid to the NZSO Foundation were $181,456 (2019: $92,525) and received were $576,131 (2019: $556,315).

The amounts paid by the NZSO to the NZSO Foundation relate to instrument leases, and donations received with ticket subscriptions. The amounts paid include:

• Instrument Leases ($16,738)

• Donations received with ticket subscriptions ($164,718)

The amounts received by the NZSO from The NZSO Foundation include:

• Support for Orchestral Activity ($200,000)

• Fundraising Executives sponsorship ($100,000)

• Administration expenditure reimbursement ($100,000)

• Grants for concert activities, training of musicians and payment for instruments ($76,131)

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the NZSO. This includes the seven members of the Board of the NZSO, the Chief Executive, the Concertmaster, Head of Corporate Services, Head of Marketing, Head of Development, Head of Artistic Planning, Head of Projects, and the Head of People & Delivery.

iv) NZSO board member Geoff Dangerfield is also a member of the Auditor General’s Audit and Risk Committee.

The full time equivalent for Board members has been determined based on the frequency and length of Board meetings and estimated time for Board members to prepare for meetings.

2020 2019 $000 $000

Key Management personnel compensation

Board Members

Remuneration

Full-time equivalent members

Strategic Leadership Team

Remuneration

Full-time equivalent members

Total key management personnel remuneration

Total full-time equivalent personnel

95

0.2

1,529

8.3

1,624

8.5

97

0.2

1,217

7.2

1,314

7.4

4746

14. Board Member Fees Board members remuneration received or due and receivable during the year is as follows.

2020 2019 $000 $000

D Best (Chair) 1

L Kubiak (Chair) 2

P Biggs 3

B Holdsworth 4

P McArthur 5

C Murray

D Wong

A Walter 6

G Dangerfield 7

E Read 8

C Walsh 9

Total

1. D Best term as Board Chair expired on 31 May 2019. 2. L Kubiak was appointed as a Board Chair effective from 1 June 2019.

3. P Biggs was a board member until mid-December 2019.

4. B Holdsworth was a board member until 25 June 2020

5. P McArthur was a board member until 31 July 2020

6. A Walter was appointed as a board member effective from 8 June 2020.

7. G Dangerfield was appointed a board member effective from 8 June 2020.

8. E Read was appointed a board member effective from 8 June 2020.

9. C Walsh was appointed a board member effective from 1 August 2020.

-

24.0

-

5.9

7.9

13.5

13.5

7.6

9.5

7.6

5.6

95.1

10.0

19.6

13.0

13.5

13.5

13.5

13.5

-

-

-

-

96.6

15. Board & Officers Liability InsuranceThe NZSO has arranged policies of “Directors’ and Officers’ Liability Insurance” which ensures that generally board members and officers will incur no monetary loss to the limit of indemnity of $3,000,000 for any one claim or in all, as a result of actions undertaken by them as board members or officers.

17. Employee Renumeration

16. Employee Insurance

The number of employees whose remuneration and other benefits was above $100,000 for the year ended 31 December 2020 within $10,000 bands are as follows.

Musical instruments owned by the players and used within the orchestra are subsidised by the NZSO at 40% of the premium under a Material Damage policy.

2020 2019

$100,000 - $109,999

$110,000 - $119,999

$120,000 - $129,999

$130,000 - $139,999

$140,000 - $149,999

$150,000 - $159,999

$200,000 - $209,999

$210,000 - $219,999

$250,000 - $259,999

$300,000 - $309,999

The Chief Executive’s remuneration fell within the range $300,000 to $309,999 for the 2020 year.




18

11

2

2

1

1

-

1

1

1

12

2

1

3

2

-

2

-

-

1

19. Explanations of Major Variances Against BudgetExplanations of major variances from the budget figures for 2020 are:

Statement of Comprehensive Revenue and Expense

Concert revenue is $1,036,000, $885,000 below the budget of $1,921,000. The below budget performance is due to concerts cancelled due to the impact of the Covid-19 pandemic, and the closure of venues.

Other revenue of $1,228,000 is $825,000 below the budget of $2,053,000. The lower revenue is primarily due to the impact of less sponsorship revenue with less concerts performed during 2020 than budgeted.

Other expenditure is $5,172,000, $3,304,000 below the budget of $8,476,000. The reduced number of concert performances resulted in lower expenditure across international conductors and soloists, venue hire, production costs, and transport and accommodation expenditure.

The net surplus of $1,522,000 compares to a budgeted break-even position. This is due to performing less concerts than planned due to the COVID-19 pandemic. With concert costs generally being greater than revenues earned less concert activity will yield a surplus.

The Crown contributed $500,000 to an increase in equity compared to a budgeted amount of $1,000,000. The lower amount was due to revised timing of the redevelopment of the Wellington Town Hall project.

General Funds is $1,317,000 higher than the budget. This is due to the surplus for the year partially offset by the lower level of capital injected by the Crown due to the revised timing of the Wellington Town Hall project.

Cash and cash equivalents is $4,616,000, or $1,982,000 above the budget. The increase is due to the unbudgeted surplus for the year, plus recovery of accounts receivable from the previous year end, and a lower spend on the Wellington Town hall project than originally planned.

Trade receivables is $401,000 higher than the budget. This is primarily due to the timing of recoveries from the NZSO Foundation.

The net book value of property, plant and equipment is budgeted to be $2,774,000. The actual amount at 31 December 2020 is $1,317,000. The lower amount is attributable to a lower investment in the Wellington Town Hall project than planned.

18. CovidThe impact of the outbreak of the coronavirus (COVID-19) has as ongoing impact on the financial performance of the NZSO. The NZSO has been unable to hold live performances at Alert levels 2 to 4. In addition the ability to bring international guest artists into New Zealand continues to be affected by border restrictions in place at Alert levels 1-4.

The cancellation of concerts reduced budgeted concert revenue from ticket sales, and impacted sponsorship revenue received as contra, however this is offset by not incurring expenditure to present live concert performances. The expenditure to present alternative methods of delivery e.g. streaming are met by savings from not being able to present live performances.

20. Events after the Balance Date The funding for 2021 will be met from the baseline funding received from the Crown, plus the surplus achieved during 2020. This funding is budgeted to be sufficient to cover the core ongoing expenditure of the NZSO. This includes salaries, lease expenditure and other related expenses. The postponement or cancellation of concerts is forecast to reduce budgeted concert revenue from ticket sales, and may impact sponsorship revenue received as contra, however this is expected to be offset by not incurring expenditure to present live concert performances.

The forecast expenditure to present alternative methods of delivery are forecast to be met by savings from not being able to present live performances.

The impact on short-term business operations is not forecast to present financial outcomes that cannot be managed from the existing financial resources of the organisation, and on going baseline Crown funding.

At this time, it is not possible to determine the full effect of the COVID-19 pandemic. There could also be other matters that affect the NZSO.

47

4948

Independent Auditor’s Report

To the readers of New Zealand Symphony Orchestra’s financial statements and performance information for the year ended 31 December 2020

The Auditor-General is the auditor of New Zealand Symphony Orchestra (the NZSO). The Auditor-General has appointed me, Chris Webby, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and the performance information, including the performance information for an appropriation, of the NZSO on his behalf.

Opinion

We have audited:

• the financial statements of the NZSO on pages 30 to 47, that comprise the statement of financial position as at 31 December 2020, the statement of comprehensive revenue and expenses, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements including a summary of significant accounting policies and other explanatory information; and

• the performance information of the NZSO on pages 24 to 29.

In our opinion:

• the financial statements of the NZSO on pages 30 to 47:

– present fairly, in all material respects:

– its financial position as at 31 December 2020; and

– its financial performance and cash flows for the year then ended; and

– comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards Reduced Disclosure Regime; and

• the performance information on pages 24 to 29:

– presents fairly, in all material respects, the NZSO’s performance for the year ended 31 December 2020, including:

– for the one class of reportable outputs:

– its standards of delivery performance achieved as compared with budgets included in the statement of performance expectations for the financial year; and

– its actual revenue and output expenses as compared with the budgets included in the statement of performance expectations for the financial year; and

– what has been achieved with the appropriation; and

– the actual expenses or capital expenditure incurred compared with the appropriated or budget expenses or capital expenditure.

– complies with generally accepted accounting practice in New Zealand.

Our audit was completed on 22 April 2021. This is the date at which our opinion is expressed.

The basis for our opinion is explained below, and we draw attention to the impact of Covid-19 on the NZSO. In addition, we outline the responsibilities of the Board and our responsibilities relating to the financial statements and the performance information, we comment on other information, and we explain our independence.

Emphasis of matter – Impact of Covid-19

Without modifying our opinion, we draw attention to the disclosures about the impact of Covid-19 on the NZSO as set out in note 18 and 19 to the financial statements and page 25 of the performance information.

Basis for our opinion

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Board for the financial statements and the performance information

The Board is responsible on behalf of the NZSO for preparing financial statements and performance information that are fairly presented and comply with generally accepted accounting practice in New Zealand. The Board is responsible for such internal control as it determines is necessary to enable them to prepare financial statements and performance information that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements and the performance information, the Board is responsible on behalf of the NZSO for assessing the NZSO’s ability to continue as a going concern. The Board is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the NZSO, or there is no realistic alternative but to do so.

The Board’s responsibilities arise from the Crown Entities Act 2004 and the Public Finance Act 1989.

Responsibilities of the auditor for the audit of the financial statements and the performance information

Our objectives are to obtain reasonable assurance about whether the financial statements and the performance information, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of these financial statements and the performance information.

For the budget information reported in the financial statements and the performance information, our procedures were limited to checking that the information agreed to the NZSO’s statement of performance expectations.

We did not evaluate the security and controls over the electronic publication of the financial statements and the performance information.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the financial statements and the performance information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.


50

• We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the NZSO’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board.

• We evaluate the appropriateness of the reported performance information within the NZSO’s framework for reporting its performance.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the Board and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the NZSO’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the performance information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the NZSO to cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the financial statements and the performance information, including the disclosures, and whether the financial statements and the performance information represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information

The Board is responsible for the other information. The other information comprises the information included on pages 1 to 23 and 51 to 61, but does not include the financial statements and the performance information, and our auditor’s report thereon.

Our opinion on the financial statements and the performance information does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements and the performance information, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the performance information or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the NZSO in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

The Audit Committee Chair of the NZSO and Board member is a member of the Auditor-General’s Audit and Risk Committee. The Auditor-General’s Audit and Risk Committee is regulated by a Charter that specifies that it should not assume any management functions.

Other than in our capacity as auditor, and the relationship with the Auditor-General’s Audit and Risk Committee, we have no relationship with, or interests, in the NZSO.

Chris Webby Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand


Joan Perarnau Garriga, Section Principal Bass

51

52

Rowan Prior, Cello

Organisational Health and CapabilityTe Ora me te Āheinga o te Whakahaere

Personnel Policy Te Kaupapa Here mō ngā Kaimahi

It is almost 75 years since the first musicians of the National Orchestra sat down to their inaugural rehearsal. In 2022, the NZSO celebrates the 75th anniversary of its first-ever performance. To ensure the NZSO continues to deliver on its objectives in future years, it must maintain a motivational and positive working environment. The NZSO’s financial resources need to be sufficient (and utilised effectively) to deliver a diverse, quality artistic programme.

Employee participation is important to the Orchestra. The NZSO encourages staff to be involved in the development, review and renewal of policies. Every year in the Annual Report, the NZSO includes a workplace profile covering headcount, age ranges, gender and length of service (see page 55).

The NZSO adheres to the principles of being a good employer. Specifically, the NZSO has policies and procedures covering the seven key elements of being a good employer, as defined by the Human Rights Commission, and is committed to demonstrating best practice in those areas.

Safe and Healthy Environment He Taiao Haumaru me te Hauora

The NZSO strives to provide employees with a healthy and safe working environment. Reporting of hazards is strongly encouraged, and systems are in place to ensure that process improvements can be made and harmful impacts minimised.

All employees receive regular information regarding health and safety and initiatives, and employee involvement and representation from across the organisation are active and productive.

2020 saw increased focus on strategies and support for employees’ mental health.

Recruitment, Selection and Induction Te Kimi, te Kōwhiri, me te Uru Kaimahi

The NZSO is committed to providing equality of opportunity in its employment policies. All permanent positions are advertised externally to attract a wide range of candidates. The best candidates are appointed to positions after following a strict selection process.

The Orchestra ensures that diversity is achieved, where appropriate, on all appointment panels. For the selection of players, all applicants are invited to audition, and to ensure impartiality, the first and second rounds of auditions are held behind screens. The NZSO also follows a structured and formalised induction process for new employees.

Flexibility and Work Design Te Pīngore me te Hoahoa o te Mahi

The NZSO recognises that both the organisation and employees can benefit from flexible working practices, family-friendly initiatives and other assistance to employees to achieve work/life balance.

The NZSO seeks workable solutions to help employees achieve work/life balance while at the same time fulfilling the organisation’s business and operational needs including the demands of the unique working environment of musicians in an orchestra.

53

Leadership, Accountability and Culture Te Ārahitanga, te Kawenga Haepapa, me te Ahurea

The NZSO has a commitment to consultation to allow employees to have an opportunity to participate in decision making. Consultative committees are set up to ensure regular consultation with employees. These include the:• Players’ Committee – the representative

voice to the NZSO’s Board and Executive Leadership of those players who are members of the E tū union

• Health and Safety Committee

• Artistic Planning Forum

• Hui Matua – ensuring that the wider leadership within the NZSO has a voice

• Environmental Action Group – advises the CEO and wider organisation on progress towards the NZSO’s sustainability mandate

• Education Committee

• Small Ensemble Committee

Employee Development, Promotion and Exit Te Whakawhanake, te Whakapiki, te Wehe hoki o te Kaimahi

Employee remuneration is regularly reviewed, and training and development opportunities are prioritised for all employees. The NZSO has introduced a professional development system for players, which continues to be improved. The NZSO also has a structured and formalised exit procedure included in the Personnel Manual, which is followed.

Remuneration, Recognition and Conditions Ngā Utu, Te Tuku Mana, me ngā Āhuatanga mahi

A majority of players are employed under a collective employment agreement. The NZSO negotiates with the E tū union, adhering to the principles of good-faith bargaining.

The NZSO provides fair and reasonable terms and conditions of employment. Many entitlements exceed the statutory minimums as set out in New Zealand legislation.

The Board of the NZSO consults with the State Services Commission with regards to the review and remuneration of the CEO.

Harassment and Bullying Prevention Te Kaupare i te Whakatīwheta me te Whakaweti

The NZSO is committed to providing a safe workplace that is free from harassment and bullying.

All employees are required to behave appropriately in the workplace, and the NZSO’s values are frequently discussed to promote how we expect employees to behave. Policies are regularly reviewed and updated, and training is developed to promote awareness of standards, expectations and what to do if someone experiences or witnesses inappropriate behaviour.

Policy Review Te Arotake Kaupapa Here

The NZSO is currently undertaking a comprehensive review of all internal policies. The aims of the review are to:• align policies with the NZSO’s vision and

mission

• ensure best-practice operations and risk management

• warrant compliance with current New Zealand legislation

The objectives include to: • identify and collate all existing policy

documents

• identify any policy gaps and consider any new policies required

• check consistencies, dependencies and relevant legislation

• republish and communicate amended and updated policies

Musicians Support Total %

Male

Female

Total

53

47

100

56

49

105

14

13

27

42

36

78

Gender



0–5 years

6–15 years

16–25 years

26–35 years

35+ years

Total

0–25 years

26–35 years

36–45 years

46–55 years

56–65 years

65+ years

Not disclosed

Total

34

19

20

20

6

100

0

17

26

24

26

3

4

100

36

20

21

21

7

105

0

18

28

25

27

3

4

105

26

1

-

-

-

27

0

12

5

2

4

0

4

27

10

19

21

21

7

78

0

6

23

23

23

3

0

78

Length of service

Age ranges

Workplace Profile Te Hanga o te Wāhi Mahi

The following tables show the workplace profile covering length of service, age ranges and gender for the NZSO musicians and support team as at 31 December 2020.

The NZSO has an establishment of 120 full-time equivalent staff (FTEs) with 90 musicians and 30 in the support team. As at 31 December 2020, there were 15 vacancies in the establishment – 12 musicians and three in the support team.

5554

Spectacular, Podium Series

56 57

Our SupportersKaitautoko

Maestro Circle ($10,000+)Verna Adam Donald Best ONZM & Susan Best Rex BensonPeter Biggs CNZM* & Mary Biggs Sir Roderick & Gillian, Lady Deane Peter Diessl ONZM^ & Carolyn DiesslThe FAME TrustFehl Charitable TrustDame Bronwen Holdsworth DNZM Dr Hylton Le Grice CNZM, OBE & Ms Angela Lindsay Christopher Finlayson QCMary Fitzwilliam AwardPaul McArthur & Danika Charlton Peter Masfen CNZM & Joanna MasfenJulie NevettGlennis, Lady PettigrewPeter^ & Juliet Rowe Les Taylor QCCarmel Walsh^ & Simon O’Neill ONZM Anonymous (2)

Virtuoso Circle ($5,000+) Marie Brown MNZM & Brendan Brown Ros & Philip BurdonGillian Clark & Matilda GoldieDiana Duff-StanilandBill Falconer CNZM & Olive FalconerBrian & Sally HasellHoldsworth Charitable TrustJennie McInnes Rochelle McLarenDeryk & Jan McNamaraClare^ & Justin Murray Jennifer Pelvin & Gary ButlerMartin & Kay PipeProfessor Jack C Richards Dame Adrienne Stewart Alison ThomsonKaine ThompsonMargaret TrotterAinsley Walter^ & Mark Stewart Daniel^ & Kylie Wong Brenda YoungAnonymous (2)

Orchestra Circle ($2,500+) Ted & Ann AspeyPaul & Sheryl Baines Mark Barrow^Virginia BreenAlison Buchanan & Eric JohnstonAllison & Victor DiemChristopher & Matthew Nolan-Downs

Hedwig EisenbarthGarth EnglandPenelope England* & Wendy Lee John ErringtonEric EspinerTom & Kay FarrarJohn Farrell & Rosemary Fullerton-SmithDick & Shirley FernyhoughMarion Fitchett & David TripeSas FookesBrian FoleyKent & Gaye Gardner^Dagmar GirardetMichael GodfreyDavid & Sally GrahamElizabeth GrieveErina HardingCliff HartMiriam Joel HartmanSusan HaywardNgaire Hoben & Richard IrvineE Prof Les HolborowRob Hole & Sue BatleyRichard & Christine IrvingDavid Jenkinson QSM Catherine & John Kennedy-GoodPaul & Gillian Kennerley David KingJudith KnibbLaurence Kubiak^ & Jennifer Maybee Martin LawrenceLorna LeonardHoward LivingstonC & K LloyddAnn MallinsonKevin & Julie MarshallJohn & Jennifer MatthewsMrs Anna McCreath MunroMusic FuturesAnn & Fergus McLeanElizabeth McLeayJeff & Marise McNeillJohn Meads & Anne Marie Moorhead Glenda & Peter MenziesMiddlekoop FamilyDoug & Adrienne MillerHeather MillerTerry & Margaret MillsKen & Madeline MoonShinji & Keiko MorimotoRoger & Barbara MosesAndre & Helene MullerMichael NichollsSir Geoffrey & Margaret PalmerPhilip & Viola PalmerChris & Dianne Patterson

Ian Fraser & Suzanne SnivelyKelly Vince & Florencia LeeDavid Lord & Tracy Grant LordJim MannNgaire Mann & Alison MannPhilippa, Lady TaitNoel Vautier & Kerrin Vautier CMGWarwick & Linda Webb MNZMCarla & John Wild A R. (Bob) WallisAnonymous (1)

Artist Circle ($1,000+) Dr M & V AbernethyRon & Joan AdamsOdette Alleyne (née Outtrim) & Alan EvansJulian & Selma ArnholdGeoff & Vivien AtkinsonLeslie AustinJenny BallantyneAnita BanburyEmma & George BettleHon. John BoscawenJohn & Christine BrookMary E BrownJohn BruceAlan & Sandy BulmerAngela CaugheyMolly ChapmanDrs JD & SJ CullingtonAlfie & Susie des TombeJohn EvansMichiel During & Cathy FergusonIan Fraser Richard & Dorothy FraserBelinda GalbraithMichael & Creena GibbonsGarry & Susan GouldLaurence GreigDr Elizabeth GriegoDr John Grigor & Ms Deborah Keating Gary & Helena HawkeRobin HendersonAntonia HillDon & Janine HunnMargaret & John HunnDavid & Heather HuttonDr Lynnette Jones & Deborah MillsMorgan & Patricia JonesFenton & Felicity KellyJane LawrenceGeoff & Elizabeth LeeAnnette & Ralph LendrumLinda MacFarlaneChristopher & Jilly MarshallRoger & Jenny Mountfort

Alan & Luba PerryC. M. PowerBruce Rae & Margaret MabbettTony ReeveJohn ReseighRichard & ValHelen & John RimmerJulia RiskSeaway Cleaning Services LtdMel Smith & Prue OxleyRobyn SmithMartin & Catherine SpencerCarol & Paul StigleyWendy Straton & Tom Young Jenny & Ian ThomasHeather & Steve ThompsonHugh & Marion TownendJo & Roger WallPeter & Kathryn WallsJeanne WardillDaphne & John WardlePaula WarrenFrank WebsterValerie WenkGlenda WestBarbara WilsonJeremy & Viv WhimsterAnita WoodsNelson WongDr Alan Wright & Nicola McClymontAnonymous (26)

Trusts & FoundationsCommunity Trust SouthHugo Charitable TrustLilburn TrustThe Cranfylde Charitable TrustThe Mainland FoundationWagner New Zealand Foundation The Performing Arts Foundation of WellingtonPub CharityThe Wallace FoundationWEL Energy Trust

Vincent Aspey Society (Notified Legacies) Leslie AustinViv & Duncan BamfieldVivian ChisholmGillian Clark Bryan CrawfordMurray Eggers D J Foley Maggie HarrisCliff HartEric Johnston & Alison Buchanan

Alison MortonIan & Kim NewI.J. NorthoverFay PankhurstBarbara PeddieRichard & Julia PerryRoss & Judith PottingerJohn & Win RockellMiles RogersJudith RossWarwick SlinnPeter & Kay SquiresRoss Steele^ Ken & Mary ThomsonJudith TrotterPeter Verner & Michael VidulichMichael & Margaret WallsDaphne & John WardleMargaret & John WarehamDeborah Watson & Alec BruceDavid Weatherburn & Maxine DixonTim Wilkinson^ & Lynette Murdoch Barbara WrefordAnn WylieDavid & the late Helen ZwartzAnonymous (9)

Sonata Donor ($500+) Jack & Elizabeth AlisonSylvia & Bill AllanProfessor Gordon &ersonH.B. AngusHeather & Richard ArmishawWarren & Margaret AustadAustrian Consulate WellingtonLesley AyersVivienne & Duncan BamfieldR. BarghPhilippa BatesSusan Batley & Rob HoleA. I. BoddyRoger & Joanna BoothCollins FamilyColin CalcinaiMD & MA CarrNoel Carroll Stuart & Lizzie ChartersLorraine & Rick ChristiePatricia, Lady ClarkJim & Margaret Collinge Sally ComblyJeremy Commons & the late David Carson-ParkerAlison CookReverand Charles CooperPrue CotterWin DaviesJanet Davidson

Dr Lynnette Jones & Deborah MillsAnna Marion Shar MilesMary O’BrienHilde OtleyMr RobinsonPeter & Juliet Rowe^Anonymous (18)

Realised Legacies (2007–present)Mrs Ursula BayfieldBarbara Kathleen Bird Peter BrooksJudith ClarkWilliam ClaytonFrederick CoadDale DensemJoan DingleyMargaret DoucasA. R. EdmondsMargaret EvertonThe FAME TrustMary Fitzwilliam Owen GebbieJohn GouldValerie & Kelvin GrantKathleen HughesAllan Silas JenkinsWilliam JohnstoneMarie LockeyMorag MacDonaldZita OuttrimAnne Pengelly Erika SchorssCorinne Shirley OpieKeith L StichburyMonica TaylorLesley WyattAnonymous

Endowed FundsJune Violet Commons FundEmma & Jack Griffin Charitable TrustReeves Harris Orchestra FundTake Note Trust

5958

All charitable donations in support of the NZSO are received and administered by The NZSO Foundation, a registered charitable entity (CC24274) under the Charities Act of 2005.

*current NZSO Staff and Musicians^current NZSO Board and Foundation members

Principal Partners

Circle Partners

Antonio Strings Limited Ark AdvanceBarfoot & ThompsonBuoy Salon & SpaComplyWithCourt Florist, Christchurch

Hurricane Denim Fuji Xerox New Zealand JBWere Juliette Florist, WellingtonMcLaren Associates LtdMulti-Media Systems Ltd

Pacific Resorts Hotel GroupPhantom Billstickers Ltd The Shoe ClinicTrinity College London

SPENCER LEVINE

Concerto Partners

Overture Partners

Special Funding Agencies

NZSO works in collaboration with SOUNZ Centre for New Zealand Music

RNZ Concert is the NZSO’s official broadcaster

WELLINGTON Level 8, Findex House 57 Willis Street Wellington 6011

AUCKLAND Level 3, Southern Cross Building 59–67 High Street Auckland 1010

Storytime Live with Troy Kingi: Te Papa

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Back cover Samuel Jacobs, Section Principal Horn

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Documents

Annual Report 2020 - New Zealand Symphony Orchestra